[ad_1]
Original title: Lufax, a listed subsidiary of Ping An in the United States, is finalized, with a valuation of more than 260 billion in nine years, and the proportion of online loan businesses has been reduced to 12%.
Source: Huibao World
In 2020, the fintech industry will usher in the landing window period in the capital market. Ant Group will set the fastest record in 25 days, JD Data has also revealed the prospectus for the Science and Technology Innovation Board, and another technology-driven consumer finance company “Immediate Finance” will also launch A shares, and successive listing news will give the fintech industry a boost. An injection of stimulant.
And after many listing rumors, the US listing for Lufax is finally resolved.
01
The online loan asset ratio has dropped to 12% and the Lufax transformation has achieved significant results or will be listed on the NYSE.
October 8thPing An from ChinaThe announcement indicated that Lufax, its wealth management platform, formally submitted a prospectus to the US SEC to seek listing on the New York Stock Exchange under the stock code “LU.” Goldman Sachs (Asia), Bank of America Securities, UBS, HSBC and Ping An Securities (Hong Kong) acted as underwriters. This also means that Lufax will become the third unicorn fintech company to hit the market in 2020 after Ant Group and JD Digital.
However, unlike Ant Group and JD Digital, Lufax has undergone relatively large business transformation and adjustment in the nine years since its establishment:
In 2011, with the wave of financial technology, Lufax emerged as the times required and entered the P2P market, gradually becoming the largest online lending platform in China. Subsequently, due to tighter supervision of online lending platforms, their structure has undergone various adjustments and gradually evolved towards a “three exchanges and one profit” pattern of Lufax, Heavy Metals Exchange, ex Stock Exchange and Ping An Inclusive .
In 2017, Lu International, which focuses on overseas online wealth management services, was established in Singapore and Lufax Holdings upgraded to “four institutions and one profit”.
In July 2019, to meet the “three low” requirements of online loan supervision, Lufax phased out its P2P business and applied for a consumer finance license.
In April 2020, it opened Ping An Consumer Finance Co., Ltd., which is 70% owned by Lujin. It is reported that in the future, Ping An Consumer Finance will cooperate with Ping An Property & Casualty Insurance to undertake Lufax’s online loan business and accelerate the overall transformation of Lufax’s online loan business.
It is not difficult to see that the Lufax transformation process is actually the “online loan” process. In the second half of 2017, the wealth management business, one of Lufax’s two main businesses, stopped offering B2C products; In August 2019, the other major business’s retail credit business also pulled out of the P2P field and stopped using P2P investors. The funds are used as a source of funds for the retail credit business.
In June 2020, Xie Yonglin, CEO and Co-CEO of Ping An Group of China, publicly stated that Lufax Holdings clearly defined its transformative positioning as a “fintech company”. The prospectus revealed that Lufax’s online loan assets fell from 336.4 billion yuan at the end of 2017 to 47.8 billion yuan in the first half of 2020, and its share also fell from 72.9%. 12.8%.
As the business model changes, so has its revenue structure. According to the prospectus, in the first half of 2020, Lufax’s total revenue was 25.684 billion yuan, a year-on-year increase of 9.5%, and its net profit was 7.3 billion yuan, a year-on-year decrease of 2.75. %. Among them, consumer credit service commission income was 20,754 million yuan, representing 80.81% of total income, a decrease of 0.3 percentage points over the same period in 2019; While the income from wealth management transactions and service fees was 699 million yuan, representing only 2.7%, a decrease of 3.6% from 2019 Percentage points.
Composition of Lufax’s income in 2017-2020H
02
After round C of funding, the valuation exceeds 260 billion yuan, and only Ping An health insurance technology does not rank among Ping An’s top five tech unicorns.
As one of the top five tech unicorns in Ping An, Lufax has been sought after by capital. Since its inception, it has completed 3 funding rounds, with a total funding amount of over US $ 3 billion. After round C of financing, its valuation is equivalent to more than 2,600 yuan. 100 million yuan.
In March 2015, Lufax announced the completion of $ 485 million in Series A financing, with a valuation of up to $ 10 billion, invested by private equity funds BlackPine, China International Capital Corporation, CDH Investments and others.
In February 2016, Lufax announced the completion of US $ 1,216 million in Series B financing with a valuation of US $ 18,500 million. It was funded by Tencent Industry Win-Win Fund, Bank of China Group,Guotai Junan, Minsheng Commercial Bank International Holdings and other investments.
In March 2019, Lufax announced the completion of US $ 1.33 billion in Series C financing, with a valuation of US $ 39.4 billion. Qatar Sovereign Fund Qatar Investment Authority (QIA), Hong Kong All-Star Investment Fund, Chunhua Capital, Japanese finance company SBI Holdings Please wait for investment.
Public information shows that after three rounds of financing, Lufax’s major shareholders include three companies: Lufax’s executive stock platform, Tun Kung Company Limited, has 42.7%, China’s Ping An has 42.3 % and 3.4%. Shareholder Eddie Siu Wah Law.
While hundreds of millions of US dollars have been continuously injected, Lufax has frequently reported chart news. Even before it has completed round A of financing, there are rumors that its valuation has reached 100 billion yuan. Your listing application location has also undergone a change from the Hong Kong Stock Exchange to the New York Stock Exchange:
In May 2014, Lufax was rumored to be a spin-off and listing, and its valuation reached 100 billion yuan;
In December 2015, Ji Kuisheng, then Chairman of Lufax, responded for the first time that he would be listed in Hong Kong in the second half of 2016 at the earliest;
In late 2016, Lufax was rumored to have launched a listing in Hong Kong, and investment banks had entered the market to carry out due diligence work and will be listed on the Hong Kong Stock Exchange in 2017;
In July 2020, foreign media reported that Lufax Holdings is seeking to list in the United States starting this year, and has contracted Bank of America, Goldman Sachs, HSBC and other investment banks to be responsible for the listing;
Although the specific amount of financing has not been disclosed in the prospectus, in previous rumors, Lu Jin’s proposed financing may be as high as $ 2 billion to $ 3 billion.
With Lufax’s upcoming listing in the United States, only one of Ping An’s five fintech companies has yet to go public. According to Ping An’s financial report for the first half of 2020, the five Ping An technology companies have a total valuation of US $ 70 billion, of which Ping An Good Doctor, OneConnect and Auto Home have market capitalizations of US $ 16.236 billion, US $ 6.743 billion and US $ 89.9 billion, respectively. Billions of US dollars, totaling US $ 31.969 billion, and Lufax and Ping An health insurance technology are valued at US $ 38 billion.
As of close on October 9 (calculated on October 8 ET), the market value of Ping An Good Doctor is approximately 15 billion US dollars, the total market value of OneConnect is 8.28 billion dollars and the total market value of Auto Home is US $ 11,883 million. More than 35 billion US dollars. If calculated with a valuation of $ 39.4 billion at the time of financing C, the market value of Lufax will exceed the sum of the three companies.
Disclaimer: The content provided by Wemedia is derived from Wemedia and the copyright belongs to the original author. To reprint, contact the original author and obtain permission. Opinions in the article only represent the author, not Sina’s position. If the content involves investment advice, it is for reference only and should not be used as an investment basis. Investing is risky, so be careful when entering the market.
Massive information, accurate interpretation, all in the Sina Finance APP
Editor in charge: Pan Qiaochu
